Practice Area Definition

Public Finance Law Definition

Strictly speaking, public finance law means the rules applicable to returns and expenditures of budgets of public authorities (state, local authorities, national and local public entities, and associations of local authorities).

In practice, this definition is often supplemented with accounting rules applicable to public bodies under the new framework set by decree N° 2012-1246 dated November 7, 2012, relating to public budgetary and accounting management (the “PBCM Decree”).

Companies in the public sector (national companies and mixed-economy companies) and their officers are also governed by such law since they are controlled, like the other administrations, by the financial courts: Court of Audit (Cour des comptes), Regional Chambers of Audit, as well as the Budget and Finance Disciplinary Court (Cour de discipline budgétaire et financière), specifically responsible for sanctioning offences relating to public finances committed by civil servants, authorized officers, accountants and managers of public organizations, and authorities controlled by the Court of Audit.

As a result, lawyers often advise public bodies and companies in the public sector, senior officials or officers of public companies who are involved in procedures of budgetary, financial, and accounting audit, as well as disciplinary and criminal procedures:– procedures of management audit carried out by financial courts. Lawyers are solicited, inter alia, to assist their clients and draft replies to provisional and final observation reports from Regional Chambers of Audit and/or the Court of Audit. Moreover, they may assist their clients during hearings before these financial courts;– procedures before the Budget and Finance Disciplinary Court;– procedures for de facto management (gestion de fait).

Moreover, there is a high need for legal advice in regard to expenditures and recovery of returns in a complex legal environment.

Thus, in addition to strictly budgetary and accounting rules, public expenditures in the form of aids to economic development are particularly regulated and controlled at the national and community levels. In particular, lawyers are increasingly solicited by their clients in regard to the possibility to implement contractual systems providing for specific financing terms while ensuring these systems do not result in de facto management, and comply with the budgetary principles of public accounting.

The recovery of debts by the public authorities, in particular through the issuance of revenue orders (titres de recettes), also gives rise to disputes governed by specific rules, either before the administrative courts or the civil courts.

Strictly speaking, public finance law means the rules applicable to returns and expenditures of budgets of public authorities (state, local authorities, national and local public entities, and associations of local authorities).

In practice, this definition is often supplemented with accounting rules applicable to public bodies under the new framework set by decree N° 2012-1246 dated November 7, 2012, relating to public budgetary and accounting management (the “PBCM Decree”).

Companies in the public sector (national companies and mixed-economy companies) and their officers are also governed by such law since they are controlled, like the other administrations, by the financial courts: Court of Audit (Cour des comptes), Regional Chambers of Audit, as well as the Budget and Finance Disciplinary Court (Cour de discipline budgétaire et financière), specifically responsible for sanctioning offences relating to public finances committed by civil servants, authorized officers, accountants and managers of public organizations, and authorities controlled by the Court of Audit.

As a result, lawyers often advise public bodies and companies in the public sector, senior officials or officers of public companies who are involved in procedures of budgetary, financial, and accounting audit, as well as disciplinary and criminal procedures:– procedures of management audit carried out by financial courts. Lawyers are solicited, inter alia, to assist their clients and draft replies to provisional and final observation reports from Regional Chambers of Audit and/or the Court of Audit. Moreover, they may assist their clients during hearings before these financial courts;– procedures before the Budget and Finance Disciplinary Court;– procedures for de facto management (gestion de fait).

Moreover, there is a high need for legal advice in regard to expenditures and recovery of returns in a complex legal environment.

Thus, in addition to strictly budgetary and accounting rules, public expenditures in the form of aids to economic development are particularly regulated and controlled at the national and community levels. In particular, lawyers are increasingly solicited by their clients in regard to the possibility to implement contractual systems providing for specific financing terms while ensuring these systems do not result in de facto management, and comply with the budgetary principles of public accounting.

The recovery of debts by the public authorities, in particular through the issuance of revenue orders (titres de recettes), also gives rise to disputes governed by specific rules, either before the administrative courts or the civil courts.